Tech entrepreneur Elon Musk said on Sunday that US electric car maker and his rocket company SpaceX are facing significant inflationary pressures in raw materials and logistics.
The South African-born mogul asked about his followers’ views on inflation in a tweet, “We are not alone.”
Tesla and SpaceX CEO Elon Musk also retweeted an article saying that the Ukraine-Russia conflict has sent commodity prices to their highest level since 2008.
Tesla & SpaceX are seeing significant recent inflation pressure in raw materials & logistics
— Elon Musk (@elonmusk) March 14, 2022
Russian invasions of Ukraine and Western sanctions, including US sanctions on Russian oil imports, are driving up the prices of energy and other key commodities such as wheat, fertilizers, and metals.
This invasion also raised the prices of metals used in cars, from aluminum in bodywork to palladium in catalytic converters to high-grade nickel in electric vehicle batteries, and is likely to set drivers up for bills.
While the metals have not yet been a target of Western sanctions, some shippers and auto-parts suppliers shy away from Russian goods, putting more pressure on carmakers already grappling with chip shortages and high energy prices.
SpaceX’s Starlink satellite broadband service was activated in Ukraine last week after Kyiv’s Digital Minister Mykhailo Fedorov urged Musk to provide the embattled country with stations in the days after it was invaded by neighboring Russia.
The service operates a group of more than 2,000 satellites intended to provide Internet access across the planet.
Tesla’s shares, which closed 5% lower at $795.35 on Friday, have lost about 25% year-to-date.
The electric-carmaker last week raised the prices of its US Model Y SUVs and Model 3 long-range sedans by $1,000 and some China-made Model 3 and Model Y vehicles by 10,000 yuan ($1,582.40).
Last week, electric vehicle maker Rivian Automotive Inc said supply-chain issues could lead to a halving of its planned production, citing rising raw material prices and supply chain constraints.
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Information Source: NDTV.com, Wionews.Com